With the Best Interests Duty coming into effect as of January 1st 2021, we wanted to explain in a little more detail what it means for our clients. Put simply, if you're looking for a home loan, use a mortgage broker to protect your best interests.
As of January 1st 2021, Mortgage Brokers are operating under an unrivalled Best Interests Duty when providing credit assistance to clients, which is yet another compelling reason to use a Broker. This new legal duty gives clients peace of mind knowing that their Mortgage Broker is legally required to act in their best interests and put their interests first.
At Bernie Lewis Home Loans we’ve been working in our client’s best interests since 1987, so we’ll just keep focussing on doing the right thing for our clients as we’re already well placed to meet these ‘new’ obligations.
Does the Best Interests Duty apply to banks?
No, the Best Interests Duty does not apply to banks. As Mortgage Brokers we have a legal obligation to act in your best interests when recommending a loan, whereas a lender merely sells you their products. In other words, we must always act in your best interest. However, if a customer goes to a bank directly, then the bank can act in their own interests and not necessarily those of the borrower.